Copyright © Master Systems Inc. All rights reserved. Why is it so difficult to implement the CMM? Is there a strategic mismatch? Stan Rifkin Master Systems Inc. 2604 B El Camino Real Carlsbad, California 92008 760 729 3388 760 720 9664 fax sr@Master-Systems.com Copyright © Master Systems Inc. All rights reserved.

Discipline of Market Leaders by Treacy & Wiersema Survey of 80 high performing firms Key to success: Focus

Operationally Excellent Highest quality => lowest cost “Formula” => short menu Process innovative

Product Innovative Market leader in innovation Measure: number of patents, Nobelists, turns in the marketplace

Customer Intimate “Infinite” menu Measure: “walletshare” NOT lowest cost, highest quality, most innovative “Schmoozes”

Focus on one, have to meet the threshold in all

Technology Trajectory Innovator’s Dilemma Technology Trajectory Reliability 3 Performance Convenience 2 Reliability Functionality Performance Price 1 Convenience Reliability Performance Time Figure 8.4, Innovator’s Dilemma, Clayton Christensen, 1977, p. 179.

Square peg - round hole CMM Strategy

Operationally Excellent Highest quality => lowest cost “Formula” => short menu Process innovative

Customer intimate: flexibility is key

Customer Intimacy (cont.)

Product innovative: features are key

Innovativeness (cont.)

Innovativeness (cont.)

Whoosh! “Fit” is an important, practical reality Always ask “Why?” Remember: we are in one of the slowest moving and least understood professions, so ... Stay alert, don’t believe everything you hear/read Search, seek, keep high standards!